Sunday 23rd Oct 2016 - Logistics Manager

CILT warns against risky long supply chains


It’s time to start thinking about making supply chains shorter, reducing the risk of disruption and high cost increases, says a new report published by the Chartered Institute of Logistics and Transport.

The report entitled “Vision 2035” examines the future of logistics and transport, and warns against overlong supply chains that are at risk of disruption and high cost rises.

It cites international pressures, such as aspiration in Far Eastern economies, as having the potential to raise factory gate prices and compromise predictable deliveries to the extent that manufacturing may well move back to the EU and the UK.

It points to trials whereby hierarchies of rings of regional distribution centres are radially linked with inner city consolidation centres to increase the efficiency of urban re-supply.

It also suggests that differentiation in the supply chain, channel management and collaboration between operators would increase multi-modal opportunities. This could include short sea and barge freight which would reduce congestion and emissions.

The report says “The logistics and transport sectors should take the lead in promoting a reduction in both freight and passenger traffic by supporting alternatives to travel, reduced commuting distances and shorter, more localised supply chains.”

Vision 2035 used Department for Transport forecasts that road travel will increase by 33 per cent between 2011 and 2035 and that HGV traffic will increase 20 per cent.

Vision 2035 was produced by the CILT’s Public Policies Committee who canvassed experts from across the Institute’s professional sectors, forums, nations and regions, as well as other modal groups, academics and professionals.  It covers supply chain, transport planning, rail, freight forwarding, aviation and maritime sectors.